Rescission of Sale Due to Constructive Fraudulent Concealment of Latent Property Defect

A purchaser, having discovered a latent defect in a purchased property that rendered it unsuitable for its intended purpose, sought rescission of the sale, arguing the seller had knowingly concealed the defect. The appellate court confirmed the lower court's finding that the seller, despite lacking express knowledge of the defect, should have reasonably been aware of it given the property's condition, thus constituting fraudulent concealment under the relevant civil code provisions. The high court upheld this decision, reasoning that a seller's obligation to disclose known defects extends to those that reasonable diligence would have revealed, affirming the buyer's right to rescission due to the undisclosed, significant defect that undermined the property's utility.